W.V. Public Insurer OKs $5B Retiree Cost Cut

CHARLESTON, W.V. (AP) - The health care provider for West Virginia public employees is cutting some major costs.

The finance board for the Public Employees Insurance Agency approved a new plan Tuesday.

Changes from the current plan include several new or increased co-payments. The new plan also hikes retiree premiums 9 percent. It ends coverage for acupuncture treatments. It also sets standards for massage therapists but keeps that coverage.

The board also voted to cut $5 billion from a looming funding shortfall from retiree health expenses.

It's capping the $343 premiums subsidy for retirees. That individual subsidy will grow by 3 percent a year to help with medical inflation.

The funding shortfall involves post-employment benefits, or OPEB. Officials say the freeze will erase an estimated $10 billion OPEB unfunded liability by half.

(Copyright 2011 by The Associated Press. All Rights Reserved.)


Comments are posted from viewers like you and do not always reflect the views of this station.
powered by Disqus
TheNewsCenter One Television Plaza Parkersburg, WV. 26101 304-485-4588
Gray Television, Inc. - Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 135538958 - thenewscenter.tv/a?a=135538958